Chris Kape, Jamco Capital’s Chris Kape looks into the future and highlights the technologies he believes can disrupt the gambling industry online.
You can’t be in the gaming industry if you lack the necessary technology.
Online gaming is no different from any other digital sector. It relies on the latest technological advances. From data to content, payments to marketing, there isn’t one part of this business that does not rely on the latest technology.
Consider the changes in legislation that took place over the past few years, allowing for the creation of a multi-billion dollar industry.
There is now a landscape that allows players to play games in a legal way, and operators can compete for millions of players’ attention. This landscape is, in essence, a battleground for technology, with operators who can best deploy the latest technologies, or find superior suppliers, or disruptive technologies, being most likely to succeed.
In the past few years, we’ve witnessed some amazing developments. The smartphone is the one that has had the biggest impact. It allows users to place bets wherever they choose and whenever they like.
Smartphone technology has revolutionized the gambling industry. From the ease of use via apps, to the speed of payments and in-play betting, there is probably no other area that’s been affected as much by smartphone tech.
Look forward
Technology discussions should be primarily forward-looking. We can, and we should, consider what innovations have led the industry to the next level. However we must always look ahead and anticipate the future.
Tech executives from a variety of industries, including finance, ecommerce, medicine, and more, are focusing on disruptive technologies in the next few years.
Most people are familiar with the most attractive technologies, including artificial intelligence (AI), Blockchain, Internet of Things (IoT), virtual reality (VR), or alternative reality.
You’ve probably read about AR and blockchain in magazines or heard them mentioned in news articles. Maybe you bought an IoT ready smart bulb, or seen AI lead to the end-of-the world in Hollywood blockbusters. What could they mean for online gaming?
Artificial Intelligence
AI or machine learning is probably at the top of this list due to its ability for personalisation and strategic automation. It also promotes responsible gambling. AI transforms intelligence about customer journeys and creates a digital picture of the player to better understand them.
It is especially appealing because it has a direct, immediate impact on the business metrics.
Blockchain
Blockchain is at the other end of the spectrum. Many people still think of crypto as the realm of conspiracy theorists and tech geeks.
We should certainly keep in mind its potential as an independent bank and for blockchain-based betting on sports, but it has not been clear how to apply it to the mainstream of igaming.
Internet of Things
IoT is a key factor in the success of online gaming. It’s how these devices are linked to their owners, and even other gadgets.
Online platforms are able to learn how their customers respond and interact with games over time by tracking and analysing the correct data. IoT connects mobile devices to land-based entities such as casinos so operators can provide a full omnichannel experience.
Virtual Reality/Alternate Reality
Content-wise, VR and AR are often touted as revolutionary in terms of immersive gaming. Enter a virtual gambling house or play Roulette on your dining table.
The real need for these experiences has been questioned due to the poor adoption of technology. Does it appeal only to techies or will it reach the general public when hardware is cheaper and available to all?
We can look forward to a number of exciting and unexpected developments in the next few years that will give gambling, a past time that has been around for thousands of years, a new dimension.
AI and its ability to reduce problem gambling is what I find most exciting.
It is possible to completely change the relationship between operator and customer by learning about them, finding out what they consider “normal” and intervening when their behaviour deviates from the norm.
Recent figures published by Kindred Group (owner of Unibet) show that such interventions have an important effect in controlling gambling.
This is an opportunity for the industry to make sure that gambling does not ruin lives, but remains a fun pastime. Directing resources towards such development can help improve relations between the public and regulators.
We must continue to be at the forefront of technology and, even better, ensure that our extraordinary industry expertise is put to good use.
